Caboolture hospitality worker Selina Young has been left wondering how she will pay her bills from July, after the Fair Work Commission decided on Thursday to slash her weekend and public holiday penalty rates.

The FWC announced Sunday penalty rates for full- and part-time workers in the retail, fast food, hospitality and pharmacy industries would be slashed, in some cases, from double time to time-and-a-half.

"Today's decision has not seen an abolishment of penalty rates altogether, but a more sensible approach to how penalty rates are applied so small and medium businesses can continue to thrive and employ," she said.

Ms Whittle said the decision would allow many Queensland small businesses to employ more staff and give existing staff more hours.

"The policy behind penalty rates represented a failure to recognise the requirements of industries operating in the 24/seven economy, such as retail, tourism, accommodation, and hospitality," she said.

"... Penalty rates are a drain on productivity and Queensland business competitiveness. Reform has been long overdue.

"Queensland businesses have resoundingly told us that they want a workplace relations framework that meets the needs of their contemporary workplaces and positively impacts on their productivity and competitiveness – and penalty rates were a top priority.

"The current penalty rates regime inhibits economic growth by providing a disincentive to employers from having longer trading hours or offering staff additional hours."

Ms McLennan said there was "absolutely no evidence" reduced wages created more jobs.

"But we do know that it would be much harder for many families to pay their bills and put food on the table," she said.

For Ms Young, the commission's decision meant a potential re-evaluation.

"The problem is, you don't earn enough money to study to get a different profession either, so you're sort of trapped because you can't afford to go anywhere else," she said.

"I love my job, but I'm going to have to try to do something because you can barely survive now on a minimum wage job.